March 2, 2021

Heavy losses in the Australian stock market due to the US-China trade war

The Australian stock market opened today with a sharp decline, dragged by the losses at the close of Wall Street, which suffered its worst day of the year, caused by the escalation in the US-China trade war.

The Australian selective ASX 200 lost 2.9%, 192 points, in the first ten minutes of negotiations, although at mid-morning it stabilized the decline around 2.3%.

The decline took place a week after the same index, created in 2000, reached its all-time high with 6,874.7 points.

The collapse follows the devaluation of the Chinese yuan below 7 units per dollar, its lowest level since 2008, in response to the announcement by US President Donald Trump of new 10% tariffs on valued Chinese products in 300,000 million dollars as of September 1.

The Chinese measure, which Trump denounced as a "currency manipulation," led the Dow Jones of the New York Stock Exchange to close with a 2.9% decline.

. (tagsToTranslate) Strong (t) lost (t) Australian (t) commercial (t) China-USA

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